Keep Your Consultations Regular

Why Regularly Consulting With Your Accountant Is Vital

We all don’t know what we don’t know.

Fortunately, there is a way of overcoming that. The solution lies in the fact that there are a whole lot of great people out there who intimately know what we don’t know.

These people are either specialists (surgeon or tax specialist) or general advisers (GP or account/business advisor) that have the expertise in their particular area.

Over the past 25 years, I have seen countless examples of bad business decisions being made simply because of lack of knowledge and expert advice.

I am talking about things like tax being needlessly paid or professional fees being incurred to rectify an issue that could have been properly addressed just by talking to an accountant PRIOR to entering in to the transaction.

Taking the time to talk to your Accountant or Business Advisor before setting up a shelf company on the Internet, signing the contract on that new car, or buying a business could save you thousands.

This is not theory, this is “in the trenches” every day stuff that we help our clients with time and time again.

If your accountant is any good, you’ll see her or him at least twice a year for a “coffee catch-up” at no cost to you. You’ll be surprised at what you’ll come away with from these meetings.

Let’s look at some specific examples…

As an example, for most people starting out in business, a business structure is a business structure and choosing the right one is not nearly as important as getting on with selling the widgets… or so they think.

A few years down the track though, when the business is in trouble OR the business is booming, the right business structure becomes very important to the business owner. At this point, it directly affects the well being of the business and ultimately, the well being of the business owner.

In this scenario, the one in trouble is looking to minimise risk and protect personal assets and the one that is prospering, is looking to gain flexibility with pre tax profits and capital structure to introduce new funds and expand.

My pet hate is companies forcing “employees” to set up a company so that they can become “contractors”. This is good for the company, but absolutely disastrous for the contractor. Sadly, I usually only find out after the event.

Another example is the humble car. Talking to your accountant can mean the difference between getting an up front GST refund on the new car on change over, OR having to pay the GST on the trade-in up front and only claiming the GST on the monthly finance payment on the new car.

This can make a huge difference to cash flow.

The really big one though, is buying or selling a business. Or, setting up a business with the intention of selling. Speak to your accountant before signing anything!

Speaking to your accountant will remove the emotion out of this transaction. Your accountant is in the box seat to help you see what the actual value of the business is, not what you believe or have been told. They’ve seen it all before.

The good news is: you are not alone

There are plenty who have gone before you and have a wealth of information to share and help guide you through the maze. Business setup, structuring costs and professional fees are now deductible in the first year. From July 2016, restructuring costs relief as a tax deduction will also be available.

There is good information readily available and it can save you thousands.

If you have a burning question or need assistance with a business decision, call John Scott 02 9310 4526 today and arrange for a free coffee catch up meeting.

‘From day one I found FRASER SCOTT & CO showed a real interest and enthusiasm in providing a service that would justify my bookkeeping and accounting needs.’

Stewart Peterson, Managing Director of Just Flights Pty. Ltd.

‘FRASER SCOTT & CO was proficient in installing the MYOB program to be consistent with our requirements and match our established manual accounting procedures. They also provided us with a procedure to reduce our payroll processing by over fifty percent.’

Bruce Applebaum, Managing Director of the Australian Brandenburg Orchestra

Thanks John for all your help developing a financial solution that met my new family's needs. With a firm budget in mind, you never gave up: obtaining an ideal mix of products that was 30% cheaper that the original quote. Thank you!

Anthony Fisk

Thank you John Scott for your support and assistance in streamlining my finances and business affairs.
My new business initiative was difficult to envisage, as there were so many variables with a start up in the charity sector. John’s clear vision and his ‘miraculous' one-page plan, help me see forward 3 years, with goals, incentives, needs and rewards. It is a very impressive document which Ive subsequently used for funding applications. John and the one page plan clarified my purpose, which in turn gave me great courage to establish my Foundation.

Kay Schubach

"I've learnt to prioritise better, be more efficient with my time and most importantly communicate my vision to my team more effectively and get them onboard in driving the business. John's guidance has created the opportunity for me to engage my staff in a creative and fun way, with the focus on 90 day periods so you see results straight away.
Any business would benefit from the strategies Fraser Scott employs. If you need help prioritising, implementing goals and you can't afford to wait a year for results, this is the program for you."

Margie Barry, The Chiropractic Works

As the owner of a very young solo practice, I found myself sailing un-chartered waters with not only limited navigational skills, but with the added barrage of bits of advice constantly floating my way like hundreds of messages in bottles!! From my first appointment with Sarah-Beth and John and with their assistance I had drafted a chart, pin-pointed my goals and destinations, plotted a route to get there and then worked out where I need to start. The stress caused by wondering when to tackle the hundreds of frustrating random messages-in-bottles and deciding which advice will work, was removed, because John & Sarah-Beth gave me targeted business expertise and advice that were tailored to my needs!!
I have got new wind in my sails now and I am looking forward to reaching my goals quickly and directly with Sarah-Beth and John’s guidance.